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WOKING, England - Industrial gases supplier Linde (NASDAQ:LIN), a market leader with a $219 billion market capitalization and robust gross profit margins of 48%, announced plans to expand its production capacity to support rocket launches and space operations through two new long-term supply agreements. InvestingPro analysis indicates the company maintains a GOOD financial health score, supported by strong operational metrics.
The company will expand its industrial gases facility in Mims, Florida, to provide liquid oxygen and nitrogen for rocket launches at nearby space facilities. The additional capacity is expected to be operational by the first quarter of 2027, building on previous expansions completed in 2020 and 2024.
In a separate agreement, Linde will construct, own and operate a new air separation unit in Brownsville, Texas. Scheduled to begin operations in the first quarter of 2026, this facility will supply liquid oxygen, nitrogen and argon to support a customer’s space operations in the region. The new unit will also enhance Linde’s industrial gas network across Texas.
"Space exploration is advancing rapidly, with missions growing in ambition and scale," said Sanjiv Lamba, Chief Executive Officer of Linde, in a press release statement.
The company reported that it supported over 100 rocket launches in 2024 with its industrial gases. Linde has been involved in the space sector for more than 60 years, dating back to providing liquid oxygen for the Apollo program in the 1960s.
Linde, which reported sales of $33 billion in 2024, supplies industrial gases and technologies to various industries including chemicals, food and beverage, electronics, healthcare, manufacturing, and metals and mining.
In other recent news, Linde has signed a significant $400 million agreement to supply industrial gases to the Blue Point Number One low-carbon ammonia plant in Ascension Parish, Louisiana. This project, a joint venture with CF Industries, JERA, and Mitsui, is set to be one of the largest low-carbon ammonia facilities globally, with operations expected to commence in 2029. Additionally, Citi has upgraded Linde’s stock rating to Buy, citing strong execution in project management and productivity improvements as key factors. The firm also raised its price target for Linde to $535.00, reflecting optimism about the company’s growth prospects and its positioning for an industrial recovery.
Meanwhile, UBS maintained its neutral rating on Linde, with a price target of $485.00, following the company’s recent investor event. The event highlighted Linde’s investments in low-carbon hydrogen and technology targeting fast-growing sectors. Bernstein SocGen reiterated its Outperform rating for Linde, emphasizing the company’s ability to navigate economic challenges and maintain a strong financial model. The analysts forecast a 7% year-over-year earnings per share growth in 2025, supported by Linde’s robust cash flow and returns. These recent developments underscore Linde’s strategic moves and financial stability in the industrial gases sector.
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